About 65 per cent of the growth in the worlds gross domestic product (GDP) in the next few years will be in Asia, according to Chicago-based global management consultancy firm A T Kearney.
To tap the opportunities arising out of this phenomenal growth, the firm has set up a separate wing for emerging markets.
In the next 25 years, 20-25 per cent of the worlds GDP will shift from developed economies to developing countries like India, A T Kearney chief executive officer Fred Steingraber said at a press conference in New Delhi yesterday.
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He was of the view that India can account for a greater share if it deregulates its economy at a faster pace.
A T Kearney vice-president Peter Wagner, who heads the firms emerging markets practice, said the firm believes in the long-term growth potential in markets such as India, China, Brazil, Turkey and Russia.
According to Wagner, the world economy has opened up considerably in the last six to seven years with several countries becoming a part of it.
We cannot be good consultants to a multinational trying to enter a country if we do not have clients in that country, he said.
The firm expects explosive growth in the consulting business in the near future.
The trends towards globalisation, deregulation and privatisation on a world-wide basis are fuelling unprecedented demand for consulting services, particularly in the so-called emerging markets, said Steingraber.
According to Steingraber, in the aftermath of privatisation, companies once managed by the state, are seeking outside investments.
Issues related to growth pose challenges. Companies are looking for ways to innovate and maintain growth, he said.
Steingraber expects A T Kearneys revenues to exceed $1 billion in 1997. In 1996, the firm earned over $870 million in revenue, an increase of 34 per cent over 1995. The firm has been enjoying double-digit growth in each of the last 14 years.
A T Kearney which recently opened its India office in New Delhi with 15 consultants will concentrate on the consumer goods, automotive, financial services and oil & gas sectors in the country.
About 25% of the worlds GDP seen to shift from developed countries to emerging economies in next 25 years